Breakthrough technology in Peru helps boost financial inclusion

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Peruvian savings banks are taking the plunge into a high-tech initiative designed to boost financial inclusion. Called BIM, short for "Billetera móvil", translated as "Mobile Wallet", the unique national e-wallet system brings together 34 financial institutions – including those savings bank within WSBI member Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC) under the partnership called "Modelo Peru". The partnership has built one shared platform –managed by technology giant Ericsson.

The first of its kind in the world, the platform enables people to pay, buy, send and deposit money with their mobile. The initiative also includes the development of an "ecosystem" for financial education through a virtual platform to access young people, a pilot project to educate a group of people in a selected region as well as an interactive mailing system with tips to create good financial habits.

The project took more than two years to go from concept to going live, according to the Better Than Cash Alliance (BTCA), of which WSBI is a member. BTCA helped drive the programme to completion, which ensure transactions between accounts on the platform happen in real time. Bim users can transact across issuers and mobile networks too, BTCA noted. It added: "BIMis not meant to replace the existing bank system but complement it. As a result, the accounts are only suitable for certain profiles of users, and the balance limits for Bim accounts are not as high as full accounts. Provided your needs fit well with the account type, your issuing bank should be able to design a program to meet your needs."